The Economic Recovery Bond Act. • A one time Economic Recovery Bond of up to fifteen billion dollars ($15,000,000,000) to pay off the state’s accumulated General Fund deficit as of June 30, 2004. • The Economic Recovery Bond will only be issued if the California Balanced Budget Act is also approved by the voters. • The bonds will be secured by existing tax revenues and by other revenues that could be deposited in a special fund. Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: • One-time increase, compared to a previously authorized bond, of up to $4 billion to reduce the state’s budget shortfall. • Annual debt-service savings over the next few years. • Above effects offset in subsequent years by higher annual debt-service costs due to this bond’s larger size and the longer time period for its repayment.
Legislative Vote Results
Final Votes Cast by the Legislature on ABX5 9 (Proposition 57) -- Assembly: Ayes 65 Noes 13 -- Senate: Ayes 27 Noes 12 --
Popular Vote Results
Y:4535084; A:71.2; N:1841138; B:28.8; Abst:638552; C:9.1
Bond Act Act
ARNOLD SCHWARZENEGGER, Governor State of California; LARRY MCCARTHY, President California Taxpayers' Association; ALLAN ZAREMBERG, President California Chamber of Commerce --
SENATOR TOM McCLINTOCK; SENATOR BILL MORROW --
Rebuttal Against Author
ARNOLD SCHWARZENEGGER, Governor State of California; LARRY MCARTHY, President California Taxpayers' Association; CARL GUARDINO, President Silicon Valley Manufacturing Group --
The Economic Recovery Bond Act California Proposition 57 (2004).